1031 Exchange

1031 Exchange

A 1031 Exchange May Help You Own A Home In Tucson

What is a 1031 Exchange?

1031 Exchange of Like Kind Property A 1031 exchange is a type of real estate transaction that can defer any tax gains. The key to a 1031 is an exchange is that the subject property must be “like-kind” property.  The advantage of a 1031 exchange is that income taxes are not paid at the time of the exchange.

The tax code creates property “classifications”. The classification of a property determines if it qualifies for a “1031 exchange”. Tax-free exchanges are under Section 1031 of the Federal Tax Code.

There are four classifications of Real Estate established by the Internal Revenue Service. The IRS’s definition for 1031 exchange property is:

  1. Primarily held for sale. (Dealer Property)
  2. Held for personal use. (Personal Property)
  3. Held for investment. (Investment Property)
  4. Held for productive use in a trade or business. (Business Property)

Only classifications 3 & 4 qualify for a 1031 Exchange. Property received and the property sold “or given” must be of “like-kind“. The use of the property determines its classification. Should the receiver of the property use it differently, it does not affect your tax status.

The Key Is “Like Kind”

Remember “like kind” is based on your use of the property. Its grade or quality is not considered. Section 1031 treatment is not applied to property held outside the United States.

Vacation homes do not qualify for Section 1031 treatment if used solely for personal use. But may qualify if rented. It must pass a use test each year. Search Condos For Sale in Tucson AZ.

This information is provided as general background on the subject of Section 1031 exchanges. It does not cover all issues or rules on the subject. It is not a substitute for advice from your professional tax adviser. You should always consult your financial or tax adviser on such matters.

Considering A Home In Tucson, AZ?

Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.

We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor duo, we invest the time to understand your home buying interests and desires. At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.

Why? We want you to know what to expect. And what to plan for.

Interested in new construction? We’ll brief you on buying a new construction home. And what’s unique about the process.

For us, you are not another real estate transaction. You are a client and, future friend. We strive to create a relationship that continues long after you move into your home. Review our profiles. Check out our backgrounds, education, and certifications.

We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services. We will also help you get deals on tile and paint to make the home you buy yours. Our professional service backgrounds mean we put you first!

Conclusion

Thank you for visiting www.premiertucsonhomes.com! It’s one of the top real estate websites in Tucson. Our clients say that, not us.

Our website provides information on communities and neighborhoods in the greater Tucson area. Want more? Give us a call – 520-940-4541. We are ready to answer your questions and help you get the information you are looking for.

We are a top Realtor duo in Tucson, AZ since 2002. Read our client testimonials. Give us a call. We look forward to making your home buying or selling a home an enjoyable experience for YOU!

Do you need to find a home for a 1031 Exchange? We can help!

We have done 1031 exchange transactions and are familiar with the issues and timing. Give us a call to discuss you interests.

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1031 Exchange was last modified: August 15th, 2018 by ben4wp
1031 Exchange was last modified: August 15th, 2018 by ben4wp

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